FSB publishes global regulatory framework for crypto-asset activities and formulates recommendations for more effectiveness and cooperation

FSB publishes global regulatory framework for crypto-asset activities and formulates recommendations for more effectiveness and cooperation

recommendations of the top level for crypto regulation

On Monday, the Financial Stability Board (FSB) published its global regulatory framework for crypto-asset activities. This regulatory framework takes into account the crashes of last year and includes nine recommendations for regulatory authorities to ensure effective monitoring of crypto companies and markets. The recommendations also include the revision of the monitoring protocols for stable coins. These recommendations of the FSB also include cross-border cooperation between regulatory authorities, governance requirements for crypto issuers and obligatory disclosures for the crypto industry.

The FSB emphasized the need to deal with the events of the past year and to emphasize the importance of the protection of customer assets and to deal with conflicts of interest. In a press release, the FSB explained: "The events of the past year have made it clear to the inherent volatility and structural weaknesses of crypto assets and related actors."

The principle of "same activity, the same risk, same regulation" is based on the principle of regulation to ensure the same competitive conditions. This principle aims to submit different forms of the same activity, such as payments, uniform rules and regulations. Monsur Hussain, Head of Financial Institute Research at Fitch Ratings, commented: "The FSB believes that cryptoma markets require further regulation to protect interest groups and financial stability, and not of the view that the regulation of crypto gives legitimacy."

The guidelines were welcomed by the industry participants. Konstantin Horejsi, Chief Product Officer of the Blocktrade trading platform, was satisfied with the fact that similar limits were determined as with other asset classes. He assumes that the implementation of the guidelines will be different, but it is confident that the regulatory authorities will now react faster to the challenges that they face.

The global framework of the FSB for crypto assets shows the trend towards a stricter regulation of the cryptoma markets. The recommendations of the top level emphasize the need for a balanced approach that guarantees the protection of investors and the safety of the financial markets. The cooperation between the regulatory authorities at national and international level can achieve effective monitoring of the crypto industry. It remains to be seen how the regulatory authorities react to this regulatory framework worldwide and which specific measures result. However, it is clear that crypto companies and markets will have to expect stricter regulation in the future.